Games in the Cloud Getting Closer, Two Startups Say

Wouldn’t it be nice to be able to play fast-action videogames without needing a console or high-end PC? At least two start-ups say that feat is just months away.

The companies, OnLive and Otoy, have been developing technologies to deliver games from “the cloud”–industry jargon for serving up software over the Internet from remote data centers. Users won’t have to install game programs; the action will take place in a standard Web browser, aided by downloaded plug-in programs, the companies say.

This concept has become routine for standard software, but not for high-end games that require sophisticated graphics chips to simulate fancy three-dimensional environments. It means, among other things, that standard server systems are not sufficient; the machines hosting such services need special graphics cards and software, too.

Both start-ups began discussing their plans in early 2009 and gave updates on their progress Wednesday at the Game Developers Conference in San Francisco. OnLive–which has received extra attention, in part because founder Steve Perlman has made news in past ventures–said it will begin operating in the continguous United States in June, with a basic service for delivering games to PCs and Macs that will be priced at $14.95 a month.

OnLive, of Palo Alto, Calif., said it will allow customers to purchase or rent games on an à la carte basis, which may require additional charges besides its base service. That service is expected to include “mass spectating”–live video of organized game matches–and the ability to take record footage of game play, which OnLive calls “brag clips,” and make video profiles of players.

“OnLive is delivering the first instant video-based social network,” proclaimed Perlman in a blog post.

Otoy, a Los Angeles-based company known for movie special effects, has been talking about similar capabilities since the 2009 Consumer Electronics Show. At that event Advanced Micro Devices agreed to support the effort, along with contributing microprocessors and graphics chips. But Otoy’s plans have some new wrinkles.

Though it still plans to offer a gaming service itself, Otoy also wants to help others to host their own games. Otoy is partnering with Supermicro, a Silicon Valley computer maker, to sell specialized collections of servers for delivering online games.

A typical configuration is two refrigerator-sized racks, each capable of delivering 3,000 streams of video games, says Jules Urbach, Otoy’s chief executive. Each circuit board inside the rack has two of AMD next version of its Opteron microprocessor, known by the code-name Magny-Cours, that each have the equivalent of 12 calculating engines. Each board also has four graphics processing units, he says.

“It’s about ten cents an hour to deliver a high-definition game through our system,” Urbach says.

Besides streaming games, Urbach says, the company’s technology also will support the gradual download of games, so they could be played directly from a PC. Otoy is not discussing pricing of its services yet, but says what it calls Fusion Render Cloud Servers should hit the market in the second quarter.

One reason for the strategy adjustments, Urbach says, is the belief that online games will propagate more quickly if more companies can offer services. Some publishers also want to retain the direct relationship with consumers, rather than work through some service like Otoy. “They want to own the servers,” Urbach says. “That is why we’ve changed the model.”

OnLive executives dispute that argument, noting that their service will allow game publishers to have transparent access to customer information. They also contend that they will have a unique edge–a device called the MicroConsole TV Adapter, which will allow games to be played over the Internet on high-definition TVs, not just PCs. That’s where console games are played, and represents a major piece of the gaming market. OnLive has not indicated how much the device will cost.

One remaining question is just how well remote gaming will work over long distances. OnLive says that users will have to be within 1,000 miles of its three data centers, which it is establishing in California, Texas and Virginia. It is disclosing few details about its game content, but said a few of the anticipated early titles include Mass Effect 2, Dragon Age Origins, Assassin’s Creed II, Prince of Persia The Forgotten Sands, Borderlands and Metro 2033.